Groups call for passage of bill creating tax credit for SAF mixers


The National Business Aviation Association and nearly 80 stakeholders sent a letter to congressional leaders April 22 advocating for passage of the Sustainable Skies Act, which would create a sustainable aviation fuel tax credit (FAS).

“We believe the most important action Congress can take to support the decarbonization of the aviation sector is to enact a blender tax credit aimed specifically at encouraging the production and use of SAF,” they said. write the groups.

“SAF is widely considered the most critical driver of aviation decarbonization, as electrification and other advanced propulsion technologies are currently unfeasible for medium and long-haul flights which account for the vast majority of emissions. GHG emissions from aviation,” they continued.

The mixer tax credit contained in the Sustainable Skies Act would start at $1.50 per gallon and would be available to SAF mixers who can demonstrate life cycle GHG emissions reductions of 50% or more. compared to standard jet fuel. An additional cent per gallon could be claimed for each percentage that the fuel reduces emissions by more than 50%. This means that the SAF that reduces emissions by 70% would be eligible for a credit of $1.70 per gallon, and the SAF that achieves a 99% reduction could claim a credit of $1.99 per gallon. The maximum credit would be set at $2.00 per gallon.

The letter stresses that the tax credit would “promote and accelerate investment in the nascent domestic SAF industry while adhering to rigorous environmental standards and ensuring that fuels that provide the greatest reduction in emissions are eligible for the greatest tax incentive”.

The letter is signed by Aerospace Industries Association, Helicopter Association International, Airbus, Honeywell, Air Company, Infinium, Aircraft Owners and Pilots Association, International Air Transport Association, Airline Passenger Experience Association, International Flight Services Association, Air Line Pilots Association, JetBlue, Airlines for America, LanzaJet, Airports Council International – North America, LanzaTech, Air Transport Services Group, Marquis Sustainable Aviation Fuel, Alaska Airlines National Air Carrier Association, Alder Fuels, National Air Transportation Association, Algae Biomass Organization, National Association of State Aviation Officials, American Airlines, National Business Aviation Association, American Association of Airport Executives, Neste, American Express Global Business Travel, NetJets, Association of Flight Attendants -CWA, NetJets Association of Shared Aircraft Pilots, Atlas Air Worldwide, Port of Portland, Avfuel, Port of Seattle/Seattl e-Tacom a International Airport, Biotechnology Innovation Organization, Pratt & Whitney, The Boeing Company, Red Rock Biofuels, Bombardier Regional Airline Association, Boom, Renewable Fuels Association, Business Aviation Coalition for Sustainable Aviation Fuel, Rolls Royce, Carbon Engineering, International Airport of San Francisco, Cargo Airline Association, Shell Aviation, Cincinnati/Northern Kentucky International Airport, Signature Aviation, Delta, SkyNRG Americas, DHL, Southwest Airlines, Embraer, Southwest Airlines Pilots Association, FedEx Express, Third Way, Fulcrum BioEnergy, Travelers United , GE Aviation, United Airlines General Aviation Manufacturers Association, United Parcel Service, Gevo, US Travel Association, Global Business Travel Association, Velocys, Green Plains, VeriJet, Growth Energy, World Energy, Gulfstream, World Fuel Services and Hawaiian Airlines.

Additional information is available on the NBAA website.

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